FFA vs SCHD
First Trust Enhanced Equity Income Fund vs Schwab US Dividend Equity ETF
Which is better, FFA or SCHD?
Multi Alternative against Large Cap Value.
SCHD has a lower expense ratio. FFA led over 3Y, SCHD over 1Y, 5Y and the full window. SCHD is less concentrated, with 41.5% of the fund in its ten largest positions against 47.7%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FFA | SCHD |
|---|---|---|
| Expense Ratio | 1.13% | 0.06%Best |
| AUM | $514M | $112.2B |
| Dividend Yield | 6.19% | 3.13% |
| Holdings | 86 | 103 |
| YTD Return | +10.34% | +27.56%Best |
| 1Y Return | +17.22% | +30.29%Best |
| 3Y Return (annualized) | +16.82%Best | +16.37% |
| 5Y Return (annualized) | +9.12% | +10.23%Best |
| Volatility (annualized) | 15.5% | 13.6%Best |
| Max Drawdown | -44.4% | -33.4%Best |
| $10,000 over 5 years | $15,471 | $16,274Best |
| Top 10 Weight | 47.7% | 41.5%Best |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management |
| Category | Alternative | Equity |
| Style | Multi Alternative | Large Cap Value |
| Inception | Aug 26, 2004 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 4, 2026 (14.9 years).
FFA vs SCHD growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 14.9 years both funds cover.
FFA vs SCHD Performance
First Trust Enhanced Equity Income Fund (FFA) is an ETF from First Trust Portfolios (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year FFA returned +17.22% while SCHD returned +30.29%. Year to date, FFA is up 10.34% versus a gain of 27.56% for SCHD.
Over three years, FFA compounded at +16.82% per year against +16.37% for SCHD; over five years the annualized figures are +9.12% and +10.23% respectively. Across the full 15-year window we track, SCHD has the edge at +11.53% annualized vs +8.15%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FFA has been the more volatile fund, with annualized monthly volatility of 15.5% compared with 13.6% for SCHD. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -44.4% for FFA and -33.4% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FFA charges 1.13% per year while SCHD charges 0.06%. On a $10,000 position that is $113 vs $6 annually, a gap of $107 per year that compounds over a long holding period. On income, FFA currently yields 6.19% against 3.13% for SCHD.
Holdings Overlap
6.1% of FFA's money is in holdings SCHD also owns. 20.1% of SCHD's money is in holdings FFA also owns.
SCHD and FFA share little of their money.
5 positions in common, counted across the 62 positions we hold weights for in FFA and 100 in SCHD, against full books of 86 and 103.
What only one of them owns
Our book lists 94 positions for SCHD that do not appear in our book for FFA (79.8% of the fund), and 55 for FFA that do not appear in SCHD (90.8%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
20.1% of SCHD is already inside FFA.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FFA or SCHD?
FFA has an expense ratio of 1.13% while SCHD charges 0.06%. SCHD is the cheaper option, by $107 a year on a $10,000 investment.
Which performed better, FFA or SCHD?
Over the past year FFA returned +17.22% vs +30.29% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), FFA annualized +8.15% vs +11.53% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FFA or SCHD?
FFA has been the more volatile fund at 15.5% annualized versus 13.6% for SCHD. Worst drawdown: FFA -44.4% vs SCHD -33.4%.
Should I hold both FFA and SCHD?
FFA and SCHD have a monthly-return correlation of 0.80, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FFA and SCHD?
20.1% of SCHD's money is in holdings FFA also owns. 20.1% of SCHD's is in holdings FFA also owns. They hold 5 positions in common, counted across the 62 positions we hold weights for in FFA and 100 in SCHD.
Which pays a higher dividend, FFA or SCHD?
FFA yields 6.19% while SCHD yields 3.13%, so FFA currently pays the higher dividend yield.
Is SCHD better than FFA?
SCHD has a lower expense ratio. FFA led over 3Y, SCHD over 1Y, 5Y and the full window. SCHD is less concentrated, with 41.5% of the fund in its ten largest positions against 47.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.